Unitika's (3103) share price surged in a short period, driven by expanding demand for AI-related glass cloth and a substantial increase in operating profit resulting from business-structure reforms.
Unitika's share price rose from around ¥200 in October 2025 to a year-to-date high of ¥2,581 on 16 April 2026, recording a substantial gain of approximately 10 times in about 6 months. The expansion of demand for components in the AI era is cited as a factor. Glass cloth in particular is said to be gaining importance as an insulating material for printed circuit boards.
The factors behind the rise in Unitika's share price can be grouped into 3 categories. First, demand for glass cloth expanded sharply, while reports of possible adoption by Qualcomm and a supply-shortage notice from AMD served as catalysts, attracting attention to the company as a semiconductor-related stock. Second, earnings improved as a result of business-structure reforms, with operating profit for the third quarter of the fiscal year ending March 2026 increasing by more than 110% year on year. Third, supply-demand factors associated with the stock's low price are said to have accelerated a short squeeze.
Unitika's business has 3 pillars: polymers, functional materials and textiles. For the fiscal year ending March 2026, revenue was approximately ¥95.6 billion, operating profit exceeded approximately ¥9 billion, and the full-year earnings forecast was revised upward. The company currently maintains a no-dividend policy and prioritizes earnings improvement.
In terms of future prospects, the company has leading niche technologies in multiple fields, but its share price may depend on thematic interest and diverge from its theoretical value. Attention must also be paid to one-off factors affecting EPS, and the company is said to need to be assessed based on its earnings power from core operations.